Entergy 2008 Annual Report Download - page 4

ast year, the United States fell
into the deepest recession since
1982, the same year the cult-
classic film, Fast Times at Ridgemont
High was released. One of the lead
characters, Jeff Spicoli, played by
recent Academy Award winner, Sean
Penn, was perhaps the ultimate slacker,
but spoke without the slightest regret
or shame when responding to
Mr. Hand, his stern instructor who
had learned his craft and the lessons
of his area of knowledge well.
In the movies, that kind of guiltless
admission of our failings or limitations
is refreshing, if not amusing.
In the real world, it’s not so funny. Not “knowing” is sobering.
It tends to bring on fear, paralysis and avoidance. The complete
truth is, like Jeff Spicoli, there is a lot “I don’t know” right now.
I don’t know how long the economic recession will last or
how painful it will ultimately be. I don’t know when the financial
markets will return to normal, or if normal is forever changed.
I don’t know what natural gas and power prices will be at the
end of the year given the above unknowns. I don’t know when
new nuclear development will become a reality. I don’t know
what the 2009 hurricane season holds in store for those on the
Gulf Coast. I don’t know when we will have a smart power grid in
the United States, what it will cost or whether the customers we
serve will make lifestyle changes needed to realize its full value.
I don’t know what action if any Congress will take on climate
change. It’s a long list. There are a lot of “I don’t knows.”
On the other hand, there are
some things I do know. I know at
Entergy we will continue to operate
our assets safely and efficiently. I know
we will continue to make effective
and efficient investments in our
generation portfolio and transmission
infrastructure based upon the best
available information stressed under
a wide range of scenarios. I know
if we are to achieve greater energy
independence as a nation, the
nuclear option has to be part of our
future and we will preserve the option
to participate as issues sort out. I know
we will be ready to act and transact
when market conditions align with our points of view on risk,
cost of capital, commodity prices and other critical market
factors. I know we will continue to stabilize our own carbon
emissions and advocate for thoughtful carbon legislation
because we are true believers that climate change is real and
the risk is totally unacceptable. I know that Entergy employees
will face whatever challenges lie ahead with resilience, courage
and optimism. I know this because they have proven it time and
time again over the past 10 years.
Knowing these things gives me a bullish outlook, even as
we face uncertainties of a magnitude we have not seen since
possibly the Great Depression. As we’ve proven in years past, at
Entergy, when we face extraordinary challenges or adversities,
we generally find opportunities that we had not envisioned in a
“steady state” economic or business climate.
To Our Stakeholders
MEETING THE CHALLENGE
LF A S T T I M E S A T
RIDGEMONT HIGH (1982)
JEFF SPICOLI:
[long pause, but then with complete
truth in his answer]
“I don’t know.”
MR. HAND:
[Mr. Hand goes to chalkboard and
writes down the words
I Don’t Know,
then underlines them, reciting]
MR. HAND:
“I like that. ‘I don’t know.’ That’s nice.”
[imitating]
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